3715
BP Writes Off $770m on India Gas Block Stake
Energy

BP Writes Off $770m on India Gas Block Stake

BP Plc wrote off $770 million from its investment in an undersea gas block off India’s eastern coast, citing “uncertainty” about benefits flowing from the government’s gas pricing policy.
India will increase natural gas prices to $5.61 per million British thermal units from $4.2 starting Nov. 1, Indian Finance Minister Arun Jaitley said on Oct. 18. BP’s partner billionaire Mukesh Ambani’sReliance Industries Ltd. (RIL) won’t benefit from the higher gas price as the venture is locked in a dispute with the government over output from the KG-D6 block.
While the gas price will be revised every six months, the increase was lower than the $8.4 proposed by the Congress Party-led regime, which lost power in national polls in May.
“The charge arises as a result of uncertainty in the future long-term gas price outlook, following the introduction of a new formula for Indian gas prices,” Europe’s third-biggest oil company said in a statement Wednesday. “We expect further clarity on the new pricing policy and the premiums for future developments to emerge in due course.” Output from the KG-D6 block has slid since 2010 as the reserves have proved difficult to access. London-based BP, which reported a 19 percent drop in third-quarter profit today, had paid $7.2 billion in 2011 for a 30 percent stake in the KG-D6 and 20 other blocks operated by Reliance.

Short URL : http://goo.gl/Lzl0iv

You can also read ...

Iran's LPG Exports Fall to 356,000 Million Tons
Iran's LPG shipments loaded, or due for lifting, in September...
Canada to Boost Support for Renewable Energy
Millions of dollars in subsidies for a Nova Scotia tidal...
The field has cumulatively produced about 15 million cubic meters of gas and 31.4 million barrels of oil and condensate.
India’s Reliance Industries has shut down an oil and gas field...
Emirati Oil Company Hoarding Jet Fuel
Emirates National Oil Company has begun storing jet fuel on...
OPEC,  Non-OPEC Aug. Compliance  at 129%
An OPEC and non-OPEC monitoring committee found that oil...
Saudis, Russia Planning to  Replace Iran Oil Market Share
The joint OPEC and non-OPEC ministerial committee, aka JMMC,...
$30 Million for Mazandaran Gas Expansion  Scheme
Over 4.56 trillion rials ($30 million) have been allocated to...

Trending

Googleplus